What Will My Life Look Like After Filing Bankruptcy?

 Posted on March 23, 2025 in Bankruptcy

If you are struggling to pay overwhelming debt, you may be thinking about filing for bankruptcy. From debt relief to an automatic stay that prevents creditors from harassing you, there are several advantages to filing Chapter 7 or Chapter 13 bankruptcy. Still, you may have misgivings and wonder what your life will look like after you file.

Filing for bankruptcy is a major decision, and finding out the potential consequences is smart. One of our knowledgeable Parker County, TX bankruptcy attorneys can answer your questions and help you decide if this form of debt relief is right for you.

Can I Get Past the Guilt of Not Honoring My Financial Obligations?

Many people have a moral dilemma about filing for debt relief through bankruptcy. You may have borrowed money through loans, credit cards, or other methods with the full intention of repaying what you owe. It is natural to feel uneasy about not being able to meet your financial obligations, but remember that many Americans are in similar situations.

For the year ending September 30th, 2024, U.S. bankruptcy filings rose by 16.2 percent over 2023. There were 481,350 non-business and 22,762 business filings during the twelve-month period.

The old saying, "bad things sometimes happen to good people," is true. Job loss, medical bills, and serious injury can make it impossible to make good on your debts. Chapter 13 bankruptcy allows structured repayments of your debts, so that could be the better option.

How Will a Bankruptcy Filing Impact My Credit Score?

Filing for bankruptcy can result in a significant negative hit on your credit score, with it staying in your credit history for up to ten years. However, your current financial strain may have already lowered your score. High credit card usage ratios and late payments are not good for your score, either.

Many times, the debt relief provided by bankruptcy dramatically improves your cash flow. You can probably begin making on-time payments that should slowly raise your score. Secured credit cards and credit-builder loans are options to consider to begin rebuilding your credit. You are required to complete a credit counseling course before your bankruptcy is discharged, and the information you learn can also lead to improving your credit score. The long-term benefits of filing for bankruptcy may outweigh the short-term drawbacks.

Will Everyone Know I Filed for Bankruptcy?

Technically, most bankruptcy filings become public court records. In reality, most people would have no reason to go to the trouble of searching for your bankruptcy records. While a housing- or employment-related background check may show that you filed, the chances are that your friends and family will not know unless you tell them.

Consult Our Skilled Fort Worth, TX Bankruptcy Attorneys

When you choose Acker Warren P.C., making sure you understand the advantages and potential drawbacks of filing for bankruptcy is part of our job. One of our experienced Arlington, TX bankruptcy lawyers can answer your questions during a free consultation. We offer virtual meetings for your convenience, so send us a message or call 817-752-9033 today to get started. You will always have access to your attorney.